tonight. i am bill o'reilly. please remember the spin stops here we are definitely looking out for you. ♪ >> sean: and welcome to the special edition of hannity. now for the next hour we are going to be taking a look at the bills of government in washington, d.c. and how it is making a lot of people very rich with your hard-earned money. we spent author peter sweitzer to our nation's capitol to take us inside america's biggest boom town. take a look. >> washington, d.c., the nation's capitol. the seat of federal power. increasingly a town that is is very rich. the local native american named the river platomic which means where goods are

offloaded or where tribute is paid. today that tribute comes in the form of trillions of dollars of taxpayer money that floods into this city every year. well one out of every six americans worries about where their next meal is coming from, washington, d.c. has the highest rate of fine wine consumption in the united states. while one out of four americans has a mortgage that is under water seven of the 10 wealthiest counties in the united states are counties around this region washington, d.c. now has the highest per capita income in the entire united states. they just passed silicone valley. you are going to discover that washington, d.c. a down that

used to be a towfn of sleepy brewer democrats is now a town of mazda ratted at this dealerships, fine wines and luxurious homes and luxurious shops. washington, d.c. take their tours or go to museums. washington, d.c. that reflects the reality of our country today. >> the great american writer great scotts fitzgerald wrote that the rich are different from you and me. america's previous boom towns became wealthy because they produced something. san francisco during the gold rush, abilene texas, cattle. and, of course, detroit during the hay day of the american automobile. all of those boom towns became wealthy in their time because they created something. this boom town comes from exstracketting it from the revs the country. boom town is something that no

one in washington wants to talk about. when they do they tend to blame the other side. the reality is today in washington, d.c. the business is not politics. the business is money. >> sean: joining us now peters sweitzer. great work. good to see you. we are going to really open up a can of worms here tonight. >> yeah. >> all right. so washington, d.c., three of the wealthiest, what, counties in the country, seven of the top ten? >> yes, that's right. that's right. this is the thing that people don't realize about washington, d.c. we think of it as a seat of federal power. politics reign supreme. there is a business model there. and really what exists is what we call the permanent political class. we think of republicans and democrats and there are philosophical differences. at the end of the day, they are all primarily looking for way to make money. you don't make money by shrinking government. you make money by growing

government. >> sean: you made some comparisons. one in six americans in poverty. one in four americans their mortgages are under water. meaning they can't even get their way out of their house without losing. >> it's the great unreported story of our time right now. because, you have got -- this is extraction. the rest of the country is in a financial economic crisis. much of the country is almost in a depression. and, yet, you have washington with the three richest counties bordering it big number, per capita income is now higher than silicone valley. the great technology engine in the united states. >> sean: amazing. >> fourth biggest city generating millionaires. fourth fastest. >> if you look at every statistic about people and incomes, washington, d.c. and the reason is is because you have a massive federal budget that gets allocated through there it goes deeper, steve. it's like a pyramid scheme. baseline budgeting, every budget, every area of government goes up 6, 7, 8% a

year. even though still borrowing nearly 50 cents of every dollar they spend. >> that's right. sean, what's interesting is not only the allocation of federal dollars but there is a lot of money that comes into washington, d.c. to determine how that money is going to be allocated. so you have got taxpayer money. you have got special interest putting money in washington, d.c. to influence the process. to it steer money in their way it is a town awash awash with cash. sad reality is it's only going to get worse not better. >> sean: one of the arguments i have made the president has successfully made the class warfare arguments that he has. it's interesting. it seems that the politicians are the ones that are greedy. selfish, power hungry. they built up their power by granting people government programs. spending other people's money. how come they have never got tagged as being greedy and selfish i think no one has ever turned the camera on them. we are going to look at this.

this is a bipartisan problem not just beat on democrats. this is a now formed aristocracies. that's why nothing changes in washington that's why you have budget debates. talking about growth rates in never cut it. reason never extracted mon through taxes in addition, there is no pressure on them to really cut. they really control wall street. it's not that money controls washington. washington controls the money. they have industrial logic to this business model just like any other business model. that is to extract power from the rest of the country into money into centralized location which is washington. >> you mentioned in your piece, peter about maserati and fine wines and exclusive restaurants and home prices, et cetera, are these government employees that buy the maseratis? >> it's probably not government employees. it's people that influence government policies. so it's people like

lobbiyists. people who ho run contracting firms. only business or customers is the federal government. it's money that gets sloshed around in all those different ways. the reality is that, you know, i lived in washington, d.c. in the 1980s, it was really kind of a middle class town with some wealthy areas. it's a completely different place now. and part of it is the size of the federal budget has grown enormously. and, of course, they take the cut of everything that comes out. >> sean: what are they producing? you are right. we talked about an oil boom. a gold rush. cattle, et cetera, and all these other -- they have produced something. what is washington producing except record debts, record deficits and telling old people we are going to means test social security and raise retirement age one hour before you die. get an hour's word of what you paid into your whole life. >> they have a business model. it's government. and it's bigger government. as long as you have the ability to borrow.

as long as they can take tax receipts and borrow they will continue to do that. that's why you are seeing now. we are trying to put the camera on this business model. let you see the lifestyles of the rich and powerful. >> sean: a lot more to get to tonight. stay right there. the ballooning federal budget has doubled in the past 10 years. be astounded where that money is actually coming from and where it's going. that and much more on this special edition of hannity. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watcng. introducing the 2013 lexus ls. an entirely new pursuit. [ male announcer ] finally, mom's oven-baked tastes straight from the microwave. like oven-roasted chicken in a creamy alfredo sauce. marie callender's new comfort bakes. it's timto savor.

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>> sean: welcome back to special edition of hannity boom town. along with the tourists and rah traxzs. visited tore also see something else when they come to the capitol these days construction and a lot of it. the city and surrounding suburbs don't seem to be experiencing the long sluggish slow recovery that the rest of america is now enduring. in washington business is booming. watch this.

>> tearing up this whole area after 70, 80 years. they are ready to put something new. >> washington, d.c. is a boom town because this town is literally flooded with money. a lot of that is borrowed money the federal budget was about $2 trillion a decade ago. today it's close to $4 trillion. and that money goes for things like national defense and social welfare programs. but it also stays right here. you see the federal government of washington, d.c. area employs 245,000 people. and the pay and compensation is very good. the average pay in compensation is about $120,000 a year. and those individuals get paid to do all sorts of things. in the parallel universe that is washington, d.c., even the fact that this is borrowed money that we're going into

debt creates a job opportunity there is a federal agency called the bureau of the public debt is hiring people to help cope with the money that we are spending that we cannot afford to pay for. the problem goes beyond federal employees because you see, in addition to federal employees, there are legions of government contractors and government contracting firms that spend time and spend a lot of money here in washington, d.c. in fact under president bush that reached some years up to $400 billion being spent to private contractors, indeed over the past decade we are talking about trillions of dollars going to private companies or to contract firms whose clients is the federal government. washington, d.c. is a new boom town but also a town that faces a lot of income inequality.

you see while there are people there getting re very very rich off of taxpayer income under this town there is. washington, d.c. ranks third in the entire country when it comes to income inequality. so this is a town that has its rich but it also has its poor. and we continue with peter sweitzer and stephan ban none. that's an interesting ending to this segment here. because a lot of poor people in washington, the government in some cases right around the block from where a lot of these big monuments, a lot of these tourist attractions are. how could that happen when 15% every dollar they spend is spent in and around washington. >> that's a great question, sean. that's the irony here. you would think that if the vision had any place it would be washington, d.c. had all this money pouring. in in washington, d.c. really what matters in a lot of cases is connections, relationships, and if you are not in that

closed circle, you are not going to get access to the funds. >> sean: you would think that these people that have a monopoly on compassion, steve would just look around them in some of these neighborhoods. i have been to many of them and they are struggling and people are starving and their kids need food stamps to feed themselves. >> it's unacceptable. also, if you look at that statistic that we had on the screen that the top 20% or top 5% is making $475,000 a year. i mean, of all the 50 wealthest cities in the country, it's the top as far as that concentration of wealth. so i think that compassion is all happy talk. i think when you look actually where the money is is spent, how the money is spent and hot money is spent on, you see you have a political class there that's really just concerned about themselves. >> sean: you pointed out too, peter. that doubled the amount of money that washington is spending in a decade from 2 trillion to just shy of $4 trillion a year. probably surpass this year or next. you know, what's interesting about that, is we take in only 2.2 trillion. so if we would have lived within our means, if they

didn't grow government just in the last 10 years, we would be a lot better shape. >> yeah, no, absolutely we would. that is what is really troubling about this. not only is washington, d.c. becoming sort of this new investor versai france under royalty. doing it on borrowed money. not a question of them taking tax revenue. they are actually borrowing money and going into washington, d.c. the reality is that, look, there are no incentives in washington, d.c. to cut the size of government. >> sean: they are not going to do it. >> no money to be made. they live in this artificial bubble that is different. >> it's like having a 4 trillion-dollar equity fund every year. the entire g.d.p. of the entire u.s. economy he is $16 trillion. this is about 25% of the economy. we're not making the argument all spend in washington but it's all control coming through washington every year. that's why there is is no incentive to ever cut anything. these guys are the beneficiary of that $4 trillion.

>> sean: wait. where is a sense of patriotism, duty, responsibility to future generations? you say there is no incentive. i thought they are supposed to serve the public. and when you have to rob our children of 46 cents of every dollar we are spending now, i would think there has got to be some. >> the way the founders look at washington and the way it used to be a generation ago. people would come to washington and public service walking away from businesses. come for period of time. serve in the executive branch whether they were republicans or democrats. people would come and serve in congress and then go home. today, that's what i'm talking about extraction. when peter and i talk about that not just extracting tax revenues. getting the best and the bright in the country starting to come to washington because they see a career. they see a way to make aer cro. the reason is when you have the ability to allocate $4 trillion year. and it's increasing. >> sean: how much political patronage? >> influence pedaling. it's happened in america before. it's happening now.

>> sean: never happened like. this not this scale. you are correct. by the way this is a crisis. because you do not have the political will in washington to change it. >> sean: if the media did a little bit of their job, they would be covering this as well but they don't. stay right there. we're going to come back. still to come, members of congress, they love to brag about their family values but coming up next, tell you about the family values they don't want you to know about and why it pays very well to be born into the right family. stay with us as this special edition of hannity boom town continues. officemax can help you drive supply costs down... and down. use your maxperks card and get a 10-ream case of officemax multiuse paper for just 4.99 after maxperks rewards. find thousands of big deals now... at officemax. [ slap! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums.

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welcome back to this special

edition of hannity boom town. when the balance of power shifts in washington, d.c. no matter who controls the house or senate or even the white house. it's good for business. those who are getting rich in the imperial city. they don't really care who is in charge, as long as the money keeps flowing in. washington, d.c. is america's boom town. like any boom town it needs to have its own aristocracies. in washington, d.c. we think of politics in terms of red and blue. democrat and republican. but here the color is green. we think about political parties and you think about political affiliations, what really matters in washington, d.c. power affiliation. by power affiliation. you are talking about access to political power and access to public officials. and that comes through lobbying. >> whatever law, whatever bill

is trying to be passed, it may have adverse impact on an industry. there is a legislative team for the association and the industry they represent. fortunately for chauffeured transportation, there is no parking on the hill. so we're able to provide chauffeur transportation to make sure that they can get to the hill in a timely manner to sell their vision. there are 100 new house members at one time in the 2010 cycle. what that means is is that every association has to come back to make sure that everything is cool. all right? we're okay. still supporting my bill? thank you for your support and they get off the hill. it's really been great for us in that respect. >> lobbying takes place right here on k street. this is the epicenter of all of it. in full view of the white house and with the u.s. capitol not far away. and when it comes to spending money, large amounts of money are spent here to influence decision making. it's a distinctly bipartisan activity. in fact, that's the best way to do it. so you have, for example, a republican like former senator

trent lot who partners with a democrat, former senator john bro. the political debates that we sau see oftentimes are a little bit like professional wrestling. it's not always what it appears to be. and let it not be said that in washington, d.c. that they don't believe in family values because, to become part of this aristocracies. oftentimes the best way to do it is either to marry into it or to be born into it it's remarkable how many members of congress have family members who are registered lobbyists. consider bill young in florida who has been in office since 1971. he is the head of a very powerful subcommittee that controls spending on defense. he has a daughter-in-law registered lobbists. she has lobbied on one issue. and done so successfully. it's on defense spending. consider the case of senator harry reid. majority leader democrat from nevada.

he has several family members registered lobbists. son lobbied on several groups and secured $50 million in earmarks. he also has another son who is involved in a a billion dollars venture involving a chinese effort to develop an energy project in the deserts of nevada. in that particular case, the majority leader took a personal interest in and helped to push it through. just remember when you see the professional wrestling in washington, d.c., it's not so much red and blue, it's really green, the color that really matters. >> sean: we continue with steve sweitzer. didn't obama say he was going to ban lobbists from his administration. eliminate earmarks? >> most transparent in history. >> sean: 27 senators. 51 house members that like bill young, i mean bill young has, what is it a sister-in-law? >> daughter-in-law, yes. that's exactly right.

>> sean: he is the father-in-law and he sits on this powerful committee and she lobbies him? >> yeah. here is the parallel of the universe that's washington, d.c., sean. you go to every one of the members and say well the fact that my son or daughter or spouse. >> sean: has nothing to do with it? >> i would not let that influence any decision i make. give me a break. that is simply not an acceptable answer. we know how the real world works. this would not be tolerated in corporations and other areas when you deal with nepotism issues. >> it's interesting. because it's such indignation and outrage when something like enron or they can demonize halliburton but yet this is the worse i have ever seen. >> it was never envisioned by the founders. this what we are talking about a political permanent class. they come to washington as country lawyers. they stay. their wives become lobbyists, their children, their --

>> that's exactly right. if you look at republicans who came in 1994. with the gingrich revolution. 10 years later, of those who had left, half of them were registered lobbists. >> is that because they are not capable of doing anything else? >> it may be. probably the most lucrative thing they could do. the reality is that it becomes very seductive in washington, d.c. and they accept it because everybody else is doing it and that's really the sad reality. it's a massive cultural problem in washington. >> you talk about aristocracies, a political class that exists here. so, for all intents and purposes, you are deal with people that are living off the public dole, taxpayers were some way shape and form and not called off for it. >> worse than. they have the arrogance to

borrow the rest. continue to borrow it not worry at bawl. while their entire families are benefiting from that that's what we talk about the permanent political class. look at incentives. work on wall street. where are the incentives. >> sean: follow the money, steve. >> follow the money. if you follow it see no incentive to cut budget and no incentive to shrink the permanent government. both political parties benefiting. >> sean: did you find people in your investigation that actually do the right thing, people that have higher standards? >> there were a few. >> sean: there are a few? >> you are instilling confidence. >> there are a few, sean. the reality is is it is very hard for those individuals to rise in seniority in either party because the horse trading and the benefiting of family members that takes place is really what helps you gain in seniority and climb in leadership. >> it's systemic. living high on the hog and the rest of the country is is

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>> sean: welcome back to this special edition of hannity. now, today to succeed in business, it takes more than a good product, good marketing. it also take as dedication to feeding the beast that is america's new boom town. when most of us visit washington, d.c. who don't come on commercial jets. private corporate jets because in washington, d.c., america's new boom town booming. there is an airport not too far from here out west that literally has 70,000 that is not to mention dulles airport that has a new jet center to house corporate jets. it was sold out almost immediately when it opened.

>> why do they come? they come here because this is where the money is. washington, d.c. is a town that has a business and that business is government. it gives them the opportunity to fret around all sorts of cash. and that looking for. 40 years ago, american corporations didn't have much use for government bureaucrats. only 14% of the largest companies in the united states would put an expolitician or exbureaucrat on their corporate board. those they'd changed dramatically. now it's 50% that have expoliticians or exbureaucrats on their corporate boards. and why do they do that? because they feel like they have to have the relationships and the contacts with the powers that be in washington in order to effectively stay in business. lobbists spend a lot of money

in this town consider single case of general electric. that single company spends every single day, 365 days a year to influence and lobby congress. and who do they pay? they tend to pay the people that voted previously sproated previously to bills that we will related to general electric. former congressman gephart missouri and trent lot from mississippi who have been paid lobists in the past for general electric. how profitable is it to lobby? the sad reality best investment that a corporation can make. in fact, it can be a lot more profitable than buying or creating a new service or a new good. it was a study done a couple of years ago by two professors at university of kansas. you know what they found? they found that for every.

2004. those companies return ared $220 for their investment. that amounts to a 22,000% return on investments where else you can make that kind of profit in america today? >> sean: 22,000% return on investment. >> yeah. >> sean: that's pretty amazing. 30 major corporations now spend more money on lobbists than they pay in federal taxes. they didn't pay a dime, right? >> that's general electric had a lot of lobbying, government money for green energy. they got tax credits but they spend a lot of time time carving out things in the tax code that benefits specifically them. i'm not somebody who wants people to pay really high taxes. but the reality is, when you have a system in a situation that leads corporations to feed the beast, so that they can make more money on the side. pay their tithe or make. >> sean: i will be honest, how can they be competitive if

they don't, if their competitors are doing it it's washington that i blame for allowing it to happen they set the rules. exactly right. that graph shows 2200% return. if you have after tax return on wall street now of 20%, you are a rock star as far as the company goes it shows you that big government has now made it than that an investment in further big government. and further regulation helps these companies. also, look at the corporate boards. this is the way big government effects capitalism. now that you have to have a bureaucrat or former politician on your board. and the reason companies put them on there because they need somebody help them navigate washington. >> sean: they pay them a lot. do you know what they usually pay them. these corporal punishment boards, you get stock options and pay. they are very lucrative. you also have liability, too. it's very lucrative. the reason companies do it, they need people to guide them through washington. >> sean: by the way, you mentioned the 70,000 jets

landing there. i doubt they are going to the lincoln monument. or the washington monument. i think they are probably going there to make deals you are right. and they have access. >> that's right, sean. interesting illustration was with president obama's inauguration they actually shut down one of the runways at dulles airport it make it for private jets. >> sean: that's so nice. >> this is a massive problem. we are not opposed to wealth creation. when it's wealth creation by extracting it from taxpayers and manipulating in a crony capitalist system. >> sean: if i'm one of the americans i spoke about earlier my house is underwater or one of the six americans on food stamps or this is why we want to turn the camera on something that has never been

exposed. people in washington never want to talk about the house styles. they don't want to talk about the construction and private jets. the private jet guys that built at dulles. they thought it was going to take them several years to sell those slots. they sold out in 72 hours. that is the level of corporations and high rollers. >> sean: they already have a lot of money. if you own a private jet. they are not cheap. >> exactly. got to get in there what about the dinners, the meals, the lunches, that's still going on, right? >> absolutely. washington, d.c. is booming. if you go to the restaurants in washington. they are going to be crowded. it's hard to get into a lot of the venues. that's what is so strange about this. if you go to a lot of the major american cities, business is slightly down or can you get. >> sean: d.c. and the more expensive the restaurant the better off they are doing. >> that's exactly right. i guess they are buying these congressman and senators would you like a 1964 whatever. i'm not a big wine connoisseur. that's where they're getting them? >> that's exactly right. as we pointed out.

while one in six americans are struggling in terms of they are worried about where their next meal is coming from. washington, d.c. is the now the highest town with the rate of consumption of fine wines. they are not getting wine in a box. this is very expensive top flight wine. >> sean: it's not boone's farm? [ laughter ] not bad. take a break. we'll come right back. a problem that lamborghini dealers in washington, d.c. are having. it's not one that you might expect. straight ahead. with hotwire's low prices, we can afford to take an extra trip this year. first boston... then san francisco. hotwire checks the competitions' rates every day so they can guarantee their low prices. so our hotels were half price.

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go to axiron.com. >> and welcome back to the special edition of hannity, boom town. let's go back to washington, d.c. where peter sweitzer shows us how astin in beverly hills they have nothing on our nation's capitol. washington, d.c. is america's new boom town. we traditionally think of the nation's capitol as a town of museums and monuments increasingly washington, d.c. is a town of luxurious living. this is a town where you can buy italian sports cars, ferrari, lamborghini, maserati. >> we have destination and location borders two wealthiest counties in the united states of america. so it's -- so we have a lot of customers in this area who can

afford our cars and we don't need to advertise. >> when you get a complaint from the factory, complaint is you have too many cash buyers. because usually the other way around. some people are trying to reach, you know their income so they can qualify to buy a product. now a case they can very comfortably afford and it pay cash. >> or if you prefer fine wine that's available as well. >> they are interested in award winning wines. they know what they are looking for. >> a lot of wineries have to make like a throw away wine. but we can't sell that kind of wine here. they like the higher end stuff. >> we have restaurants opening everywhere. especially from new york restaurant tours to vegas restaurant tourists open in this area because business is steady year around. >> washington, d.c. is a town that is unlike the other boom

towns of america's past. in that the luxurious living that's afforded here doesn't come from its own creation of wealth. but it comes from extracting wealth from the rest of us. when other towns created automobiles or beef cattle for american consumption, it made them a boone -- boom town. the luxurious lifestyle washington has today which is comparable to beverly hills or wall street is very different. because that wealth creation is really wealth extraction from the rest of us. in washington, d.c. today, there is a game being played, and there are are always winners and losers. but the reality is that when that game is is played, it's played with our money. and we're the ones that end up paying for it. >> sean: we continue with peter sweitzer and steve ban none. they have too many cash buyers and they don't have to advertise? >> yeah. >> sean: what is the average price? is that a lamborghini dealer in?

>> lamborghini and ferrari. maserati. you take your pick. these are cars that say $325,000. and they have cash buyers. you know, look, sean, we don't fault. >> sean: no shortage of them. >> that's exactly right. i'm not begrudging people but this is all connected -- >> -- right. >> sean: though this frankly corrupt. let's call it what it is corrupt economy. >> it's extracting money. not creating a product that people are freely choosing to buy. they are selling access or selling connections and relationships. and so we don't fault the businesses that we highlight here because they're just earning a living. like other people are. but it's the system and the corrosive system. here is something to think about, sean. we used to think about when jfk and his family was in the white house. it was camelot. they brought their wealth from the rest of the country to washington, d.c. and created glamour. a lot of the glamour now is people coming to washington with no wealth and making it off of government sports car and paying cash for it guy

sitting there advertising don't have to advertise and guy like in here like in miami and los angeles and they can pay cash. luxurious lifestyle of the rich and powerful has metastasized. fine restaurants which you can't get into. i have never gone one washington correspondent's dinner, steve. i will tell you what, the reason you don't go down there, because you don't like that whole system and how it is set up. >> sean: i don't like the whole scene. no way. >> we have to start looking at this with a jaundiced eye. it this thing is out of control. the founders never wanted things like paris and london and rome. extracted all the talent and wealth to one location. that's what you have today. >> sean: it's not like they are producing products that people can buy. for example, traditional boom

town, let's say it's an oil town. all right. so, a lot of jobs associated. >> silicone valley. >> sean: silicone valley. gold rush if we want to go back a little further. you can literally pinpoint what they are doing. >> they are making people's lives better. you have got cars. you have got beef in abilene, texas. washington, d.c. it's really extraction. to show you how bad it is is, sean, actually, lamborghinis, north american headquarters, it's not in beverly hills. it's not in new york. it's in suburban washington, d.c. that's actually where they put it this is where they see the growth taking place. this is where they see an opportunity to make money in a way that they aren't going to anywhere else. that is extremely troubling. >> sean: the problem with the average -- for the poor average american that works hard. plays by the rules. pays their taxes obeys the laws, all these things, raises their kids their biggest problem is i guess they are not buddying up to people. buying the right people the expensive bottle of wine and taking them out to dinner and wining and dining and say,

listen, i need your help on this bill. >> yeah. >> sean: i need a provision here. can you help me out? >> yeah. >> sean: that's what's happening and they are all getting what they want. >> that's exactly right. if middle class americans could hire lobbyists, their lives would be better. it's a severe subgame in washington, d.c. the success and wealth of washington, d.c. doesn't create wealth for the rest of the country it suck it ups. we need to recognize that because washington is a boom town, that is bad news for the rest of the country. and until we do something about it, until we sort of cut off that supply or reduce it, it's just going to get worse. >> sean: stay right there. we're going to come back. we'll continue more after the break. stay with us as peter and steve do as well. straight ahead. ♪

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look, i agree with earlier comments both made. both sides are guilty but the party of big government is the democratic party. we heard the president new hampshire his inaugu >> we heard the president in his inaugural address, he doubled down big spending. $6 trillion in new deb.

every other president, $10 trillion in debt, he is going to literally or accumulate more debt than every other president combined ahead of him. is it worse under obomba -- stimulus, health care? has that had a big impack? >> his agenda was spotend us out of the recession and that didn't work. and a lot of money was captured in wash c. if you look at a per capilla average, washington got 9 times -- >> how did washington get 15% of the federal budget -- how did that happen? >> that's the crisis we are in. the crisis we are in is where we have i party of big government and their junior party is the party of little-big government. but there is no party of limited government. you see this with the stimulus and the bailouts of the banks, everything is concentratessed in

washington. the rest of the country has not pulled out of this recession. wash does -- they have the lowest unemployment. they have the most robust real estate market in the country. if you look at president obama -- we are nonpartisan. this is both parties' problems. however, what is scary -- if you listen to the president's inaugural address where he ran as a centrist -- he doubles down. forget the policies he's talking about. but if you look at the scale of the government. he's very up front. big government is a solutions provider. so that means this permanent political class is only going to get worse. when you look at sequestration, the budget, the spending cuts and the debt ceiling, we believe it's a dog-and-pony show. it is not going to get cut, it's only going to get larger. >> he never spoke about the budgets, living within our means, making difficult choices, just the opposite. he seems to want to lock in this

permanent welfare, dependency mentality and state which now is in the country, which pretty much guarantees that america becomes greece. >> there is no question, you have a philosophical, ideological commitment to growing government. and you have the sad reality that there are a lot of go-long to get long governments. politics in washington is like professional wrestling. okay? there is this demonstration going on, but it's kind of scripted. it doesn't rae really get to the full truth of what is going on. >> there are two other issues we haven't dealt with yet. one is the media -- they are not doing specials on this. the american people -- you know what? i don't know if they are aware or they don't care -- you want to weigh in here. but the bottom line is, they voted in obama. i said -- they got chris matthews all mad, he didn't get a tingle up his spine. i voted for obama, i accept the results of the election.

good luck with that because i know socialism doesn't work. >> the mainstream media -- as you know, we have been working with you for a long time to think thew these issues. new york times finally had an article about this. we hope the mainstream media -- >> they are not going to. >> i think the american people, if they start to demand this and the more shows do you like this any bring it to light, the people are going to get angry. i don't think the dna has changed, when governor romney talked about the 47%. i think the problem is the corporations and the big government, they are in partnership to drive these programs. one of the things we are trying to show is that there is a business model in washington, d.c. that has an industrial logic to grow government. okay? i don't think people want these entitlements, i think these things are growing and they are making benefits easier to get to. if you go to the gordian knot of big corporations and guys who are economically seized from

that. >> part of the problem is that the infrastructure is so ingrained, this is the foundation. this is how things are done. very few people seem to be aware of it. that then becomes, wow, we have to really change the system. i think it's going to take a lot of pain before people wake up. >> i think you are right, sean. we have to remember, with the mainstream media, they are part of this ecosystem, they live in washington, d.c. -- >> they want access. they are out at the dinners and the parties -- >> they like this i. the things that we don't go to. as a matter of fact, you and brite bart -- when was that? we did a concert -- >> we marched you over to our house. >> i said, i have to get out of here and i ran out of town as quick as i could. it's been a very, very informative hour. this is important stuff. good work. we are going to continue it and follow up in the days, weeks, months to come. peter and steve, thank you. that's all the time we have left. i want to thank all of you